Small Businesses
What is a small business?
A business generally owned by an individual or a group of individuals like a family.
What is an entrepreneurship?
The setting of a business or businesses that takes on financial risks.
Why is a franchise less risky?
It is a rubric, and the business is already formed.
What is a franchisee?
A person who buys a franchise
What is an entrepreneur?
A person that takes the risk of starting a business
- Restaurant
- Grocery Store
- Online (Etsy, Amazon, etc.)
What are they interested in?
taking on new business opportunities
Are franchises initially more expensive or cheap?
More expensive
Is it risky or not to own a franchise?
No
What are they passionate about?
They usually are very passionate about their products services
- Generate profit
- Stay small
- Easy
What is their mindset?
- taking on new risks
- pursuing new untested ideas
- achieving rapid profit
What steps does an owner of the business take to form their franchise?
The owners of the franchise license their operations, products/services, branding, and knowledge for a franchise fee or royalty
Why would a franchisee rather start a franchise than their own business?
The product has already been tested and the public already recognize the brand?
Why do entrepreneurs scale their business?
To grow their business faster
What % of small businesses survive their first year?
80%
What percentage of millionaires are entrepreneurs?
88%
What percent of franchises are successful?
90%
What is a royalty fee?
A royalty fee is a fee paid by the user to the original creator for using their property, content, or business, or business idea
What are characteristic of an entrepreneur?
Discipline, curiosity, willingness to try things, taking risks, creativity, and always have a plan.